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Black rock income and bond funds and bitcoin

Devo
edited May 29 in Fund Discussions
https://cointelegraph.com/news/blackrock-income-bond-funds-buy-bitcoin-etf

Found this interesting.

"BlackRock’s income and bond-focused funds have bought shares of the asset manager’s own spot Bitcoin
BTC exchange-traded fund (ETF) in the first quarter, regulatory filings show.

BlackRock’s Strategic Income Opportunities Fund (BSIIX) snapped up $3.56 million worth of the iShares Bitcoin Trust (IBIT) while its Strategic Global Bond Fund (MAWIX) made a $485,000 purchase, according to May 28 Securities and Exchange Commission filings."

Comments

  • BaluBalu
    What is the point of buying .01% (of AUM) position. May be someone can ask the manager what should we take away.
  • Devo
    I think their idea might be to "normalize" holding crypto in a fund, whether the investor asked for it or not. Once you get it in, you can increase the size. There might also be ways to lend the bitcoin to generate "income". But why? Are there no other ways to generate income that they need to add Bitcoin to the fund? Blackrock is too big. They think they can do whatever they want.
  • yogibearbullyogibearbull
    edited May 29
    IShares IBIT has no income, so what's the point in having it in "strategic" income funds? It may make more sense in multi-asset funds that do include derivatives - and iShares has those too. But BlackRock may just be testing the investor reaction by including tiny amounts in some bond funds.

    Cathie Wood has been buying own Bitcoin ARKB for own fintech ARKF (there may be others).
  • BaluBalu
    How about cheap publicity?
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